While capturing in mpeg2 format using MSP7 capture utility with Matrox Marvel G400 TV card I get superb quality at variable 6000kBps DVD PAL 704x576. Only problem is whenever there is a panned shot changing next frame content drasticaly the capture gets jerky. I cant change the IBP frames while capturing with MSP7 capture utility. Is there any way around to capture panned footage with acceptable quality?
Please help...

When you say it's jerky, I presume you mean when you play back the captured file, correct? Which program are you using to play it back, and where are you watching it (a video monitor or the computer's screen)?

Thanx for the reply,
Yes while playing the captured file on the monitor plus the TV at the same time. Everything plays nicely but the panned shots. I am using wmp 9 to play the file. I capture with ulead media studio pro 7 capture utility.

WMP is probably deinterlacing the image (so that it plays correctly on the PC screen), which means you are only getting half the updates (compared to an interlaced image playing on a video monitor or TV). If you make a DVD and play it on a set-top player, you should get the full number of updates per second. Make sure you have not selected any options to deinterlace during capture, or it won't be reversible.